Daily chart shows the pair is moving in a falling channel and neared cyclical low of 105.55 (May 3rd low) earlier today. A day end closing below 105.55 would open doors for sharp losses.
As of now, only Fed rate hike could save the day for Yen bears. Markets believe the Bank of Japan has run out of ammo and even more stimulus may not have intended effects.
Consequently, if Fed statement fails to prop up rate hike bets, the spot could see a day end closing below 105.00. That would open doors for a slide to channel support around 102.00.
On the other hand, we could see the pair break channel resistance and near 112.00 levels over the next month or so if July rate hike bets rise and there is no Brexit.
As of now, only Fed rate hike could save the day for Yen bears. Markets believe the Bank of Japan has run out of ammo and even more stimulus may not have intended effects.
Consequently, if Fed statement fails to prop up rate hike bets, the spot could see a day end closing below 105.00. That would open doors for a slide to channel support around 102.00.
On the other hand, we could see the pair break channel resistance and near 112.00 levels over the next month or so if July rate hike bets rise and there is no Brexit.
